The stock spiked 8.5% to $112 in afternoon trade as the company reiterated expectations for mid-to-high single-digit growth in consolidated earnings before interest, tax, depreciation and amortisation for the quarter to 30 June.
That guidance helped fuel a sharp rally from traders looking for confirmation of operating momentum.
Light & Wonder outlined a clear financial roadmap alongside the trading update. The group says it is still focused on reducing leverage toward the midpoint of its targeted net debt leverage ratio range over 2026.
Management is aiming to bring net debt below 3x during the first half of 2027, signalling continued balance sheet repair.
Capital management remains a key part of the story. As of 1 July, Light & Wonder has around USD180 million (A$259 million) left under its active share buyback programme.
During the second quarter, the company repurchased more than 1.6 million shares for a total outlay of USD134 million, shrinking the share base and potentially boosting per-share metrics. The stock’s move suggests the market is rewarding the combination of earnings growth, debt reduction and ongoing buybacks.
Investors will soon get a fuller picture of how the strategy is tracking. Light & Wonder plans to publish its complete second-quarter financial results before the ASX opens on 5 August AEST.
That release will test whether current guidance and leverage targets are realistic.
